Klarna Reimagined: From BNPL Pioneer to Neobank on Wall Street

Klarna, the Swedish buy now, pay later (BNPL) firm, is preparing for a highly anticipated initial public offering (IPO) on the New York Stock Exchange as early as September 2025. The company, which filed for an IPO in May, has revised its valuation target to $12.6 billion to $13.4 billion, with shares expected to price between $34 and $36 each. This valuation is based on the company’s 371 million existing shares. Klarna initially aimed for a valuation exceeding $15 billion but paused its plans in April due to market volatility linked to U.S. President Donald Trump’s trade policies. Now, the firm is repositioning itself as a broader consumer neobank, expanding beyond its BNPL core offerings [2].

The broader IPO market is showing signs of recovery and optimism, with several high-profile listings experiencing strong first-day returns. For example, Figma surged 250% on its first day of trading, while CoreWeave and Circle Internet Group have both seen significant gains since their debuts. According to Renaissance Capital, the average return of IPOs in 2025 is 20%, nearly double the 10.7% return of the Morningstar US Market Index for the same period. The number of IPOs priced in 2025 has increased by 61% compared to this point in 2024. Analysts attribute this resurgence to a combination of improved investor sentiment, easing recession fears, and strong demand for AI-related and crypto-linked companies [1].

Klarna is one of several high-profile firms expected to go public in the coming months. Alongside Klarna, other anticipated IPOs include design software company Canva and cryptocurrency exchanges Gemini and Kraken. Canva recently announced a share sale program that would value the firm at $42 billion, while Gemini is valued at $7.1 billion. Klarna’s current valuation of $6.7 billion, as reported by PitchBook, reflects the company’s significant market presence in the BNPL sector [1].

The growing appetite for technology-driven financial services has contributed to increased interest in these IPOs. Investors are particularly drawn to firms with strong growth potential in emerging sectors such as AI and digital assets. Analysts note that regulatory developments in the crypto space under the Trump administration are creating a more favorable environment for public listings. The success of early 2025 listings such as Bullish and Circle indicates a strong market appetite for crypto-related exposure [1].

Despite the optimism, analysts caution that IPOs remain inherently risky and depend heavily on market conditions. While the current environment appears favorable, prolonged uncertainty—whether from trade policies, inflation, or geopolitical tensions—could lead to delays or cancellations. Klarna’s ability to maintain a strong market presence and secure a successful IPO will depend on its performance in the coming months and the overall health of the IPO market. However, given the current trajectory, the company appears well-positioned to capitalize on the momentum driving the market for high-growth tech and finance firms [1].

Source: [1] The IPO Market Is Heating Up. Here's What Investors ... (https://www.morningstar.com/markets/ipo-market-is-heating-up-heres-what-investors-should-be-watching) [2] Klarna Eyes $13B IPO Valuation (https://www.connectingthedotsinfin.tech/klarna-eyes-13b-ipo-valuation/)